This document provides an introduction to various banking products and services. It begins with definitions of banking and the key roles banks play in providing savings opportunities and supplying liquidity through lending. It then describes the different types of banks in India including central banks, public sector banks, private sector banks, and cooperative banks. The document outlines common banking products such as deposits, loans, letters of credit, and safe deposit boxes. It also discusses important banking functions including issuing banknotes, processing payments, and intermediating credit. Finally, it briefly touches on key aspects of bank marketing like market segmentation, pricing strategies, distribution channels, and the marketing mix.
2. Banking
Basic Definition: A system of trading money
which:
provides a safe place to save excess cash,
known as deposits.
supplies liquidity to the economy by loaning
this money out to help businesses grow and
to allow consumers to purchase consumer
products, homes, cars etc.
3. Institutions which deal in money and credit.
An intermediary, which handles other
people’s money both for their advantage and
to its own profits.
A financial institution that links the flow of
funds from savers to the users.
Plays an important role in the economy of any
country as they hold the saving of the public.
4. • Central Bank: The Reserve Bank of India is the central
Bank that is fully owned by the Government
• Public Sector Banks: State Bank, Regional rural banks
• Private Sector Banks: Foreign Banks, Scheduled and
Non- Scheduled Banks
• Co-operative Sector: State Co-operative Banks, Central
Co-operative Banks, Primary Agriculture Credit Societies
• Development Banks/Financial Institutions: IDBI, SIDBI,
NABARD
5. Issue of banknotes (promissory notes issued by a
banker and payable to bearer on demand)
Processing of payments by way of telegraphic
transfer, internet banking or other means
Issuing bank drafts and bank cheques
Accepting money on term deposit
Lending money by way of overdraft, installment
loan or otherwise
6. Providing documentary and standby letters of credit (trade
finance), guarantees, performance bonds, securities
underwriting commitments and other forms of off-balance
sheet exposures
Safekeeping of documents and other items in safe deposit
boxes
Currency exchange
Acting as a 'financial supermarket' for the sale, distribution
or brokerage, with or without advice, of insurance, unit trusts
and similar financial products
7. Issue of money, in the form of banknotes and
current accounts subject to cheque or
payment at the customer's order.
Netting and settlement of payments.
Credit intermediation
Credit quality improvement
Maturity transformation
8. “ Bank marketing is the aggregate of functions,
directed at providing services to satisfy
customers financial (and other related) needs
and wants, more effectively and efficiently
than the competitors keeping in view the
organizational objectives of the bank.”
9. The existence of the bank has little value
without the existence of the customer.
Aim is not only to create and win more and
more customer but also to retain them
through effective customer service.
Appropriate promise to a customer through a
range of services (products) and also to
ensure effective delivery through satisfaction
is important.
10. Identifying the most profitable markets now
and in future;
Assessing the present and future needs of
customers;
Setting business development goals and
making plans to meet them
Managing the various services and
promoting them to achieve the plans
Adapting to a changing environment in the
market place.
11. Designed after taking into account the strengths
and weaknesses of the organization.
bank with clientele from various segments could
think of “market penetration” by offering the
existing range of services to existing customers.
Bank which are not facing acute competition could
think of “Market Development” by offering the
existing services to new customers.
design new product range for their customers of
various segments
12. Banks deal with individuals, group of persons
and corporate
More or less homogenous groups in terms of
their needs and expectations.
Market segments, targeting one or more
segments, developing products and
marketing programs tailor-made for these
segments.
14. Services Sector
Household Sector
1. Marginal
2. Low Income
3. Middle Income
4. High Income
15. Market Targeting in which each segment’s
attractiveness is measured and a target
segment is chosen based on its
attractiveness.
Positioning which is the act of establishing a
viable competitive position of the firm and its
offer in the target segment chosen.
16.
17. consists of usual four ‘Ps’ of Product, Price,
Place and Promotion of marketing mix
Product: The products offered are the
services which includes various types of bank
accounts, different types of loans,
investment services, Credit cards, Demat
accounts, online banking, mobile banking
and many more.
18.
19. Buyers look for satisfaction which differs
from person to person.
Keeping in view the level of satisfaction of a
particular segment, the banks have to frame
the pricing strategies.
The interest charged and the interest paid
should have a co-relation between them.
20.
21. It refers to the establishment and functioning of a
network of branches and other offices through
which banking services are delivered.
Objective is to get the right product ,at right places
at right time at the least cost.
Extensive branch network- access to large section of
people
Proximity may play a determinant role in selecting
the bank.
22. Banks are coming up with extension counters,
specialized branches, mobile branches, banks
acquisition and amalgamation so as to have
sufficient point of contacts with the customer.
With the advent of technology other point of
contacts have come up. Such as:
ATM
Telephone banking
Online banking
Mobile banking
Video banking etc.
23. Advertising
Publicity
Sales Promotion
Personal Selling
Push and Pull Strategies
24. It involves the people(5th P) of the bank i.e.
the employees.
Employees should also be treated as internal
customers, and sort of marketing mix should
be followed.
Quality Human resource can be a point of
differentiation
25. The quality of service provided during the
buyer-employee interaction.
Efforts for previous strategies will turn futile
if the interaction does not takes place
satisfactorily.
It involves :
Process (6th P)
Physical evidence (7th P)
26. Refers to the systems used to assist the
organization in delivering the service.
Aids to the promotion of customer
satisfaction
It involves:
speeding delivery of services
reducing the paper work
standardization of procedures
customization as per individual demand
simplicity etc.
27. It includes signage, reports, punch lines, other tangibles,
employee’s dress code etc.
The company’s financial reports are issued to the
customers to emphasis or credibility.
Signage: Each and every bank has its logo by which a
person can identify the company. It creates visualization
and corporate identity for the banks.
Tangibles: banks give pens, writing pads to the customers.
Punch lines: Depicts the philosophy and attitude of the
bank. Banks have influential punch lines to attract the
customers.
28. Referral services
Direct mailing
Cold calling
Offering items having your brand identity
Using the media
Getting celebrities to endorse the product or service.
Sponsoring events
Using permission-based Marketing
29. Recommendation of Talwar’s committee,1975:
Establishment of customer service committee/staff
committee in the every branch.
Customer meets to be held at the branches at least
once in a half year.
15th of every month (next day if 15th is a holiday) to
be observed as customer’s day at branches and
administrative offices.
Provision of complaint-cum-suggestion box in every
branch.
30. Provision of ‘May I help you’ counter in
branches.
Immediate credit of cheques up to Rs.2,500
which has since been increased to Rs.15,000.
Payment of penal interest in case of delay of
collection of cheques.
In the year 1995 ‘Banking Ombudsman’ was
established by RBI with objective of resolving
customer grievances in a quick and inexpensive
manner.
31. Bankers need to understand the rural
psychology
Employing local literate youth for confidence
building
Banker must be aware of agriculture aspects,
cultural and communal aspects, institutional
facilities etc.
Process of change should be known to him
Status of various development plans should be
known
32. R:Retail Business for Rural Community As
(Consumer & Producer)
U: Urban facilities, Investment, Infrastructure
R: Animal Husbandry & Allied Activities
A: Agri Production(Field Crops, Plantation)
L: Linkages & Synergy
33. Horticulture, Plantation, Vegetable growing,
Floriculture, aromatic and medicinal plants,
Bio-diesel plants etc. for high investment
Opportunities
Post Harvest and Food Processing
Seed Multiplication & Processing
Dairy Farming, Sericulture, Aqua-Culture &
Others.
Irrigation Projects & Wasteland
Developments.
Rural Tourism & Other emerging areas.
34.
35. Industrial Credit and Investment
corporation of India bank - largest private
sector bank in market capitalization
Second largest overall in terms of assets.
largest issuer of credit cards in India
36. Product :
Saving account: offers a power packed
Savings Account with a host of convenient
features and banking channels to transact
through.
Senior citizen services: convenience with
benefits
Fixed Deposits : Safety, Flexibility, Liquidity
and Returns
37. Recurring Deposits: Affordability and higher earnings.
Roaming Current: access your accounts at over 500
networked branches across the country.
Loans: Home Loans. Personal Loans. Car Loans, two
Wheeler Loans, Commercial Vehicle Loans. Loans against
Securities, educational loans etc
Investments: ICICI Bank Tax Saving ,Foreign Exchange
Services, Senior Citizens Savings Scheme, 2004.
Cards: Credit card, ATM card, travelers card
Demat services
Online money transfer
Mobile banking
38. Pricing
1. Pricing Decisions related to interest, fee or
commission.
2. RBI and IBA
3. Raising Number of Customers
39. Place
1. Services are sold through branches
2. Making Promised Services available to the
ultimate users.
3. Branches OF ICICI:
1900 in India and 33 in Mumbai.
40. Promotion
1. Advertising - Television, radio, movies, theatres
2. Print Media- Hoardings, newspaper, magazines
3. Publicity- Road shows, campus visits, sandwich man,
Sponsorship
4. Sales Promotion- Gifts, discount and commission,
incentives, etc.
5. Personal Selling- Cross-sale (selling at competitors place),
personalized service
6. Telemarketing- ICICI one source Call center (mind space)
41. Process
1. Standardization- ICICI bank has got standardized
procedures got typical transactions
2. Customization- Specialty counters at each branch to deal
with customers of a particular scheme
3. Simplicity- Separate counters exist with clear indication
4. Customer Involvement- Money matters and signature
42. Physical Evidence
1. Signage
2. Financial Reports- The Company’s financial reports are issued to
the customers to emphasis or credibility
3. Tangibles- Pens, Writing Pads to the internal customers.
Passbook and Cheque books to the customers.
4. Punch lines- “Hum Hai Naa”
5. Employee’s Dress Code- ICICI bank follows a dress code for their
internal customers
43. People
1. All people directly or indirectly involved in the
consumption of banking services.
2. Workers, Employees, Management and other
Consumers
3. Employees of a Bank represents the organization
to its customers.
4. Internal Marketing
